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Business maths
Profit Margin Calculator
Calculate gross profit, profit margin, markup, and break-even selling price from revenue and cost.
How to calculate profit margin and markup
Margin and markup use different bases
Gross profit = revenue − cost. Profit margin = gross profit ÷ revenue × 100, while markup = gross profit ÷ cost × 100. Enter revenue and cost for the same item or batch; quantity is used to divide gross profit into profit per unit.
Worked example: RM1,000 revenue
For RM1,000 revenue and RM600 cost across 20 units, gross profit is RM400. Margin is RM400 ÷ RM1,000 × 100 = 40%, while markup is RM400 ÷ RM600 × 100 = 66.67%. Gross profit per unit is RM400 ÷ 20 = RM20.
Keep the cost basis consistent
Revenue and cost must both be positive. The result reflects only the costs you enter; tax, financing, overhead and other expenses are excluded unless included in that figure. The break-even amount shown equals the entered total cost, so for a batch it is a batch total, not a per-unit selling price.